Hra limit

This query is : Resolved

Robin verma (Querist)
Follow

15 November 2016 If an employee drawing monthly salary of Rs.30000 from a private limited company how much can be given as HOUSE RENT ALLOWANCE. Is there any limit on HRA ??

Please help.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
Follow

15 November 2016 Normally 40% of Basic and DA will be considered as HRA , Same will be allowed in Income Tax

Robin verma

Robin verma (Querist)
Follow

01 December 2016 CAN THE BASIC SALARY BE RS 20000 IN THIS CASE...ANY PROB AS PER INCOME TAX ACT

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
Follow

01 December 2016 Basic salary should be minimum 50% of gross salary, HRA 40% of Basic .

Robin verma

Robin verma (Querist)
Follow

01 December 2016 Suppose Basic 20400 HRA 8000 Transport Allowance 1600 Rent Paid Rs 10040. Now assessee is liable to pay 0 tax even after earning Rs 360000 pa. Is there any prob in this

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
Follow

01 December 2016 Yes, HRA you get Maximum Rs.8000/- P.M so CA Rs.1600/- PT Rs.200/- Rs.9800/- PM if work out it exceeds Rs.100000/- so your taxable limit is within taxable limit, so Taxable liability is Nil.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now